Archive for the ‘Wire Fraud’ Category

Auburn woman arrested for bilking $400,000 in fake cancer scheme

June 26, 2013

A 51-year-old Auburn woman was arrested Monday on federal wire fraud charges for faking cancer and bilking more than $400,000 from an elderly Auburn resident who believed her story.

U.S. Attorney Jenny Durkan says Julie Ann Dahlquist claimed to have cancer but no medical insurance or money for treatment. The victim wrote checks to Dahlquist for as much as $9,000 three times a month to pay for the non-existent treatment.

The federal indictment says the victim wrote 190 checks between May 2009 and September 2012 totaling over $400,000. Dahlquist allegedly used the money for gambling and other expenses.

Along with the wire fraud charge, Dahlquist is also charged with Social Security fraud for hiding the $400,000 she defrauded out of the victim to collect Supplemental Security Income benefits . She also failed to disclose another $100,000 in gambling winnings.

The indictment says that additional income would have disqualified her from collecting benefits. Dahlquist faces up to 20 years in prison for the wire fraud charge, and an additional five years for Social Security fraud.

Full Article and Source:
Auburn woman arrested for bilking $400,000 in fake cancer scheme

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Federal Judge Jails Estate Lawyer Joseph Caramadre as Flight Risk

June 1, 2013

A Rhode Island estate planning lawyer’s effort to revoke his guilty plea in a controversial $30 million elder insurance fraud case was a “bizarre” and unjustified “hatchet job” on Joseph Caramadre’s former counsel, a federal judge said.

U.S. District Judge William Smith not only nixed Caramadre’s bid for a new trial but agreed with prosecutors in the Providence case that he should immediately be jailed as a flight risk, pending his sentencing in July, report the Associated Press and the Providence Journal.

“It was amazing to watch a defendant perjure himself saying he perjured himself the first time,” the judge said.

Caramadre and an employee were charged with defrauding dying individuals into allowing insurance investments to be made in their names.

They pleaded guilty to wire fraud and conspiracy shortly after their trial began in November.

Source:
Federal Judge Jails Estate Lawyer as Flight Risk, Nixes ‘Bizzare’ Effort to Revoke Plea

See Also:
Death Takes a Policy:  How a Lawyer Exploited the Fine Print and Found Himself Facing Federal Charges

Radio show host and attorney Warren Ballentine indicted

February 5, 2013

An attorney out of Chicago and national radio show host for the Radio One Network has been indicted after being accused of defrauding lenders out of more than $10 million. The indictment has been announced by the US Attorney’s Office, where Ballentine is being accused of working with others to secure mortgages that were later deemed to be fraudulent.

The indictment includes six counts, including bank and wire fraud. Each count with a maximum prison term of 30 years. He could also be fined up to $10 million dollars on every count. He is set to be arraigned on February 5.

Prosecutors claim that Ballentine owns a law firm in suburban Country Club Hills, but he lives in Durham, North Carolina right now.

Dr. Boyce Watkins, a Finance Professor who has appeared on Ballentine’s show, says that people shouldn’t judge until the evidence is presented.

Full Article & Source:
Radio show host and attorney Warren Ballentine indicted

CA Man Charged With Alleged Theft of $17 Mil

November 4, 2012

The former assistant and boyfriend of a South Bay financial trust manager was indicted by a federal grand jury in San Jose today on fraud charges in connection with the alleged theft of $17 million from his former boss’s clients.

Leo Joshua Kennedy, 60, of Danville, was indicted on 10 counts of wire fraud.

Kennedy was formerly the controller of Backhouse Fiduciary Services of Campbell, of which Christine Backhouse is president.

U.S. Attorney Melinda Haag said the indictment alleges that Kennedy stole $17 million from trust accounts managed by the company.

Kennedy is due to make an initial court appearance before U.S. Magistrate Paul Grewal in San Jose on Nov. 20, Haag said.

Full Article and Source:
Danville Man Indicted on Fraud After Alleged Theft of $17 Million